Bull Fight: August Live Cattle

John Lunney General Commentary Leave a Comment

August Live Cattle

     The August cattle market traded slightly lower in today’s session closing just off lower extreme of 105.600 at 106. We appear to be at a level on contention as several indicators are converging right around 106.400. We have closed below support for the first time and the bulls will have to get something going in a hurry to save this market from a further declines. With another close below support the door will be left open for another press to the downside. Fibonacci levels come in around 104 and gets pretty spacey below with no clear points of support until +/-99.500. That being said,  shorter time frame charts are still showing divergence at this level and could be signaling the end of what appears to be an non-impulsive decline. If the contract can fortify 106.500 and manage to close above this level it will reach for +/-108. Only a daily close above 109.500 will take the boot off this market’s throat. We will keep a close eye on structural developments in the event of a rebound. If impulsiveness can be identified one could argue we have commenced upon a (C) wave major advancement. Overhead target zones come in at +/-114.500 (intermediate target) and higher at +/- 120.

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